Can Deck Medic charge a fee to review a potential new supplier?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information that we may request. We may charge you a supplier review and testing fee and we may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time, not to exceed 60 days, after we receive your written request for approval and all additional information and samples that we may request. We may, in our discretion, withhold our approval. When evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the suppliers quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the suppliers approval, in our sole determination, will allow us to advance the overall interests of the System.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if a franchisee wants to purchase or lease a source-restricted item from a supplier not already approved by Deck Medic, the franchisee must submit a written request for approval along with any additional information requested by Deck Medic. Deck Medic may charge the franchisee a supplier review and testing fee. They may also request samples from the supplier for testing and documentation for evaluation. Deck Medic also reserves the right to inspect the supplier's facilities.
Deck Medic will then notify the franchisee of their approval or disapproval within 60 days of receiving the written request, additional information, and samples. However, Deck Medic retains the discretion to withhold approval.
When evaluating a supplier, Deck Medic considers several factors, including the supplier's ability to meet Deck Medic's standards, specifications, and production requirements, the supplier's quality control, whether Deck Medic or its affiliates are the exclusive supplier of the item, and whether approving the supplier will advance the overall interests of the Deck Medic system. This process ensures that all suppliers meet Deck Medic's standards, but it also means franchisees may incur additional costs and delays if they wish to use a non-approved supplier.